"If Oil Drops To $40 The Geopolitical Consequences Could Be Terrifying"-Jeff Gundlach

ZeroHedge
In a recent interview with FuW, DoubleLine’s Jeff Gundlach explained his concerns about the oil market not being “unequivocally good” for everyone…
Question: The crash in the oil market is already causing jitters in the financial markets around the globe. What is your take on that?
Gundlach: Oil is incredibly important right now. If oil falls to around $40 a barrel then I think the yield on ten year treasury note is going to 1%. I hope it does not go to $40 because then something is very, very wrong with the world, not just the economy. The geopolitical consequences could be – to put it bluntly – terrifying.
What would that mean for stocks?
Gundlach is right historically…
Large and rapid rises and falls in the price of crude oil have correlated oddly strongly with major geopolitical and economic crisis across the globe. Whether driven by problems for oil exporters or oil importers, the ‘difference this time’ is that, thanks to central bank largesse, money flows faster than ever and everything is more tightly coupled with that flow.
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actually it is quite good for low oil prices. Transportation costs go down. Argriculture costs go down, fabrication of all kinds of plastics goes down which all have effect on lower prices on products
No, $4.69 a gallon was terrorizing and devastating, period.